{ ask } about Gamma trading

Discussion in 'Options' started by anugrahtex, Feb 5, 2008.

  1. I want to ask about gamma trading in practical application. not in theory, and where can i found the link or forum about this complimentary strategy .

    also if all ET members have known this , woould you all share the advantage and disadvantage for this Gamma trading

    Thanks all
  2. rosy2


    are you asking about hedging your position to be delta neutral?

    basically, if your long a ATM straddle and the underlying moves up, you sell some underlying. if it moves down you buy the underlying
  3. yes you're right

    However when we're waiting for one leg to be profitable , theta will decay from day to day.....

    There's a lot article for gamma trading / hedging
    but i listen to Optionuniversity webinar from Ron ianeri
    he said to minimize theta loss , gamma trading will help